Chapter 1 - Business Objectives

Question 1

Goal of Non-Profit

Answer 1

Value for Money

• Economy - Acquire resources cheaply (Inputs)
• Efficiency - Minimum waste (Link inputs to outputs)
• Effectiveness - Operate in line with org objectives (Outputs)

Question 2

Non-Financial Objectives

Answer 2

• Stakeholder relationship
• Intellectual - IP, Brand, Reputation
• Human - Staff
• Social - relations with local community
• Enivironmental

Question 3

3 most important economic factors

Answer 3

• Interest rates
• Inflation
• Exchange rates

Question 4

International Risks

Answer 4

• Cultural - e.g. product naming
• Additional risk due to goods in transit
• Credit risk - may take longer to pay debts
• Economic risk - exchange rates